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Ngmoco picks up $25 million in funding, buys Freeverse

TechCrunch is reporting that iPhone game company Ngmoco has just picked up $25 million in another round of fundraising, which they used to buy out Freeverse, one of the most storied Mac game developers (and recently, iPhone game developers) on the block. The two companies were already close -- Freeverse went with Ngmoco's Plus+ network for social connections in its games, including Flick Fishing and Moto Thunder -- but this buyout would put Ngmoco in charge of their whole catalog. Ngmoco CEO Neil Young says that he plans to take all of Freeverse's currently paid games and convert them all into the free-to-play model that Ngmoco has grown so comfortable with.

It's a pretty bold move -- Ngmoco is seriously investing in this model (even to the extent where they'll cancel planned games unless they can squeeze them into the model), and now Freeverse will have to follow suit. There's no word on what will happen to Freeverse's significant Mac game library as well -- will that part of the company be split off? Will Ngmoco shut it all down and choose to focus on iPhone apps?

Unfortunately, the only available information is the post on TechCrunch. We've put out calls to both developers and will get back to you when we know more.

Update: Touch Arcade has interviewed Young. He doesn't mention Freeverse's Mac titles, but he does confirm that "freemium" is the way they're going to steer all of Freeverse's titles in the future.

TechCrunch is reporting that iPhone game company Ngmoco has just picked up $25 million in another round of fundraising, which they used to...
 

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kevinstewart95

They do it because of pirates.

March 10 2010 at 3:43 PM Report abuse rate up rate down Reply
TC

Im another person that used to think Ngmoco was a sign of a quality game. I loved both Rolando games.
But since Eliminate showed me how this new model works, and then finding that games like Rolando are getting canceled, Im not interested in this company any more. I dont like it when I dont know how much something is going to cost me.

What was wrong with how desktop software has done it for years? Free version with limited levels, and in app purchase and you have the rest of the game! I want good games at a fair price, not to feel ripped off!

February 23 2010 at 4:39 AM Report abuse rate up rate down Reply
Dave

The problem is that it isn't "pay as you go," it's "get the app free and if you need x—which you do need—you'll have to pay $5, and if you need Y—which you also probably need—you'll have to pay another $5." So now this "free" game is actually ten dollars. There are a lot of companies that do this and can take a $50 piece of software and essentially charge $300 because you actually end up needing the things that they will unlock for a fee.

In other words, these products are not free at all, or even reasonably priced... this stuff could be called "unlockware," and it will cost you much more than a straightforward purchase would.

Used to like NGMOCO. I don't anymore. I used to really support Freeverse, but this move makes me sad. Unlockware is evil.

February 22 2010 at 10:34 PM Report abuse rate up rate down Reply
1 reply to Dave's comment
Jason

I would disagree of your assessment. While I'm not a fan of this business model, ngmoco's approach truly is a "pay-as-you-go". For instances, I have both TouchPets Dogs and Eliminate, and I have yet to pay a single penny for either game. My daughter plays TouchPets every chance she gets, and I play Eliminate periodically. In TouchPets, you buy dog food and some accessories. There are enough free ways to get dog food, and the accessories are far from necessary. In Eliminate, you pay for "energy", however, it gets recharged automatically after a period of time, and you can still play without energy if you don't mind forgoing the credits (not a problem for me).

So while I would prefer a "buy once" business model, I can't complain too much because both games have been free and entirely playable for me.

February 22 2010 at 11:03 PM Report abuse rate up rate down Reply
Colin P

This is a sad day. I have been a big of Freeverse's for a long time, and to see them get bought out is an end of an era in many ways. I would not be shocked if they shut down or significantly downsize the Mac games and applications development dept. for good.

February 22 2010 at 9:53 PM Report abuse rate up rate down Reply
Ryan Sandberg

I like ngmoco's games, but Freeverse's business model. It should be interesting to see how this all turns out...

February 22 2010 at 9:18 PM Report abuse rate up rate down Reply
doodad

I don't quite get the pay-as-you-go hate, seeing that it appears that the iPad is completely designed where almost every piece of content is going to be pay-as-you-go or monthly fees.

You want to read the NYT or Time? Get a monthly subscription.

Want 3g for a day? Well, pay for a month's worth.

You can't run hulu natively on an iPad? Heck, NBC is probably happy about that, now that they have an excuse to be charging a monthly fee or on an episodic basis.

Why did all those 99 cent bikini apps disappear? Because "someone" would rather you pay a monthly service fee to Playboy or Maxim or whoever to look at women in bikinis.

Actually, it will be very interesting to see what happens when this thing is actually released, given that, aside from e-books, almost all of the things that these media companies are expecting to be charging for are generally available for free through Safari (aside from the whole flash thing). At some point, some of these media companies are going to have to "break" their webpages on the iPad to attempt to drive sales of an app.

Sure, some of the more tech-y guys, like "Wired" (or ESPN) will create special app versions of their content that will make if worth your time to bypass their basic website. But, I doubt most of the old media groups want to ramp up to make their content all swoopy and lose control of their content to upstart presentation people; they just want re-package what they have because it's cheap and easy.



February 22 2010 at 9:00 PM Report abuse rate up rate down Reply
Brian Reading

Wow, this news is huge. I didn't see this coming. Hopefully, bringing in some new talent to the company will stop this freemium nonsense ngmoco has recently embraced.

February 22 2010 at 8:46 PM Report abuse rate up rate down Reply
David

Ngmoco has lost their way and has become pure evil with their "pay to play" rape model.

I held this day in dread the moment that Apple announced in-game purchases. Some developers can not help themselves. Instead of selling an app for $4.99, that is worth $4.99, they try and rape their customers for $30 - $40.

I will refuse to buy anything from Ngmoco, and I reluctantly, and rarely, buy from developers who publish games with in-game purchases but I will never fall for the "pay to play" scam.

Hopefully Ngmoco's failure and subsequent demise will not be very far off!

So their straw-men of 90% piracy, followed by their straw-men of unsuccessful sales have fallen and their greed has been exposes.

Please people, do not from these jerks!!!

February 22 2010 at 7:18 PM Report abuse rate up rate down Reply
1 reply to David's comment
Rory Blanks

I feel the same way about ngmoco now too. and it hurts more because I used to like them so much. :(

February 22 2010 at 7:31 PM Report abuse rate up rate down Reply
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